To prevent the moral hazard problem, health and life insurance companies may write policies
A) for which premiums increase dramatically once the policyholder is discovered to have contracted an illness.
B) containing provisions which either reduce or eliminate benefits to persons who contract prespecified illnesses.
C) limiting the amount the companies will pay in the event that claims are submitted by policyholders.
D) with all of the above provisions.
E) with only A and B of the above provisions.
D
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Exculpatory clauses are generally unenforceable if they seek to avoid liability for:
A. negligence. B. accidental damages. C. better monetary benefit for one side. D. fraud or willful misconduct.
The balanced scorecard system requires management to consider ________.
A) both financial and operational performance measures B) only performance measures C) only leading indicators D) only financial and customer perspectives
A(n) _______ service desk gives the impression of a centralized service desk by using sophisticated telephone systems and the Internet; analysts may be located anywhere.
Fill in the blank(s) with the appropriate word(s).
If the actual quantity of direct materials used in producing a commodity differs from the standard quantity, the variance is termed:
A) controllable variance B) price variance C) quantity variance D) rate variance